New deal could increase Canadian crude-by-rail shipments by 50 percent

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MONTREAL — Cenovus Energy Inc., a major Canadian oil producer, has signed a deal with Canadian National to move more crude oil, Reuters reports. The deal is expected to increase the amount of crude oil shipped in Canada by 50 percent by year’s end.

CN is already ordering new locomotives to handle the increase in traffic, the news agency reports. [See "CN orders 60 locomotives from GE," Trains News Wire, Sept. 5, 2018.] The news of the deal — which was reported by a government consultant who was not at liberty to discuss it — came just days after a Canadian court overturned the approval of the Trans Mountain oil pipeline extension.

In December 2017, CN and Canadian Pacific moved 150,000 barrels of crude oil a day. But June 2018, that increased to 200,000 barrels per day and by December it is expected to hit 300,000 barrels per day.